Question

"From the following facts calculate what Yvette Kline paid Hollow Co. for the purchase of a dining room set. Sale terms are ( 5 / 10, n / 30 ). a. Sales ticket price before tax, ( $ 3,000 ), dated"

Answer 1

To calculate what Yvette Kline paid Hollow Co. for the purchase of a dining room set, we need to understand the sales terms (5/10, n/30). Yvette paid within the 10-day period, so the amount paid before tax is $2,850.

Step-by-step explanation:

To calculate what Yvette Kline paid Hollow Co. for the purchase of a dining room set, we need to understand the sales terms (5/10, n/30). This means that if the payment is made within 10 days, a 5% discount can be applied. If not, then the full amount is due within 30 days.

Let's assume Yvette paid within the 10-day period. In this case, to find the amount paid before tax, we can multiply the sale ticket price ($3,000) by the discount rate (95%).

Amount paid before tax = $3,000 * 0.95 = $2,850.